DR in wholesale markets - Renewable Energy Vermont

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Transcript DR in wholesale markets - Renewable Energy Vermont

Distributed Generation/Demand Resources in ISO New England’s Wholesale Markets

2nd Annual Distributed Energy Conference - Building Resilient Communities

Eric Winkler,

Ph.D.

Demand Resources Department ISO New England May 15, 2008

Presentation Outline

ISO New England

• ISO New England is a regional transmission organization (RTO), serving Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. •

Operation

of New England's bulk electric power system.

• Development, oversight and fair administration of New England's wholesale electricity

markets

. • Management of comprehensive bulk electric power system and wholesale markets'

planning

• •

Demand Resource Types

Demand Resource measures fit into one of two general categories: – Passive – Active Demand Resources are installed measures resulting in additional and verifiable reductions in end-use demand on the electricity network in New England.

40,000 Based on the ISO’s

Expected Load Forecast

, New England will need approximately

200 MW

of new resources by 2009 and approximately

4,300 MW

of new resources by 2015. 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Passive DR 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total Net Capacity 90/10 Load Plus Operating Reserves 50/50 Load Plus Operating Reserves © 2008 ISO New England Inc. Demand Resources Department

New England Load Duration Curve (2006)

30,000 Active DR 28,000 26,000 For less than 60 hours per year, New England needs an additional 2,500 MW of capacity to serve load 24,000 22,000 20,000 18,000 16,000 0 250 500 750 1000 1250 1500 1750

Hours per Year

Forward Capacity Market

• Procure enough capacity to meet New England’s forecasted demand and reserve requirements three years into the future.

• Select a portfolio of Supply and Demand Resources through a competitive “descending-clock auction” process.

– Pay the selected Supply and Demand Resources the market clearing price subject to performance incentives and penalties.

– Provide a long-term (up to 5 year) commitment to Supply and Demand Resources to encourage investment.

Highlights of Forward Capacity Auction

• The objective was to secure 32,305 MW for the six-state New England region in the 2010 to 2011 timeframe.

• 39,155 MW of qualified new and existing demand- and supply-side resources competed. • The floor price for this auction of $4.50/kW-month was reached in the eighth round, with a remaining excess supply of 2,047 MW. ($1.85B/yr) • 2,554 MW of DR cleared in the auction, 70% active 30% passive (<2% DG).

www.iso-ne.com

Eric Winkler, Ph.D.

[email protected]